Property prices and the value of amenities

Implicit hedonic prices of amenities are estimated by means of a study of the variation in house prices in Sydney. The results include estimated hedonic prices for aircraft noise, road traffic, road widening, good views, spacious streets, good access to shops, and high quality neighborhoods. Since hedonic prices are the response of the market at the margin to supply as well as demand forces, they do not necessarily reflect average household willingness to pay prices. However, the paper concludes that they provide a basis from which the values of amenities to be used in benefit cost studies can be estimated.     

Direct-use values of woodland resources consumed and traded in a South African village

SUMMARY

This paper examines the contribution of secondary resources harvested from a savanna ecosystem to household income in Thorndale village, South Africa. The valuation of these resources provides a key tool for adopting sustainable development practices. The study shows the relevance of the dependence of rural people on secondary resources and implications for social and economic equity. Fuelwood, edible herbs and thatch grass contributed 80.6% ($492.53) of the total gross direct-use value ($559.46) of all the resources per household per annum. The net direct-use value of eight directly harvested resources was $455.11 after accounting for the opportunity cost of labour. The value of secondary resources traded amounted to $126.62 per household, equivalent to 22.6% of values from direct consumption, suggesting a high degree of dependence of villagers on natural resources harvested for household consumption. There were high relative direct-use values for fuelwood (44%) and edible herbs (25.9%) reflecting the high energy requirement, and substitute for cultivated vegetables, respectively. It was generally perceived that resources were in short supply probably due to the level of dependence, and as a coping strategy.     

Public Willingness to Pay for Recovering and Downlisting Threatened and Endangered Marine Species

Abstract: Nonmarket valuation research has produced economic value estimates for a variety of threatened, endangered, and rare species around the world. Although over 40 value estimates exist, it is often difficult to compare values from different studies due to variations in study design, implementation, and modeling specifications. We conducted a stated‐preference choice experiment to estimate the value of recovering or downlisting 8 threatened and endangered marine species in the United States: loggerhead sea turtle (Caretta caretta), leatherback sea turtle (Dermochelys coriacea), North Atlantic right whale (Eubalaena glacialis), North Pacific right whale (Eubalaena japonica), upper Willamette River Chinook salmon (Oncorhynchus tshawytscha), Puget Sound Chinook salmon (Oncorhynchus tshawytscha), Hawaiian monk seals (Monachus schauinslandi), and smalltooth sawfish (Pristis pectinata). In May 2009, we surveyed a random sample of U.S. households. We collected data from 8476 households and estimated willingness to pay for recovering and downlisting the 8 species from these data. Respondents were willing to pay for recovering and downlisting threatened and endangered marine taxa. Willingness‐to‐pay values ranged from $40/household for recovering Puget Sound Chinook salmon to $73/household for recovering the North Pacific right whale. Statistical comparisons among willingness‐to‐pay values suggest that some taxa are more economically valuable than others, which suggests that the U.S. public's willingness to pay for recovery may vary by species.     

General equilibrium benefits for environmental improvements: projected ozone reductions under EPA's Prospective Analysis for the Los Angeles air basin

This research demonstrates how locational equilibrium models can be used for benefit measurement with the detail required to match EPA's benefit analysis for the first Prospective Analysis. Using the projected changes in ozone concentrations for 2000 and 2010 together with the Sieg et al. (Int. Econ. Rev., forthcoming) estimates for household preferences for housing, education, and air quality, this paper measures general equilibrium willingness to pay for the policy scenarios developed for the Prospective study as they relate to households in the Los Angeles area. Benefits are evaluated taking account (at the household level) of initial air quality conditions, relocation based on changes in ozone, and price changes. The framework generalizes the partial equilibrium/general equilibrium comparisons available with conventional computable general equilibrium and property capitalization models. Estimated general equilibrium gains from the policy range from $33 to $2400 annually at a household level (in 1990 dollars).     

The flux of particulate carbon in an estuary

The major sources and sinks of suspended particulate carbon are identified for northern Chesapeake Bay, Maryland, USA. The area of the bay under consideration was divided into two sections. The northernmost section (upper bay), from the head of the bay to the vicinity of Baltimore, was characterized by a high input of particulate carbon from upland drainage. The section from Baltimore to the mouth of the Potomac River (middle bay) was dominated by an internal supply of particulate carbon from primary production. The northernmost section was characterized by major particulate carbon losses to the bottom and to benthic respiration, with slightly less than half (43%) of the particulate carbon respired in the water column or converted to dissolved organic matter. In contrast, respiration in the water column or conversion to dissolved organic matter was responsible for the loss of about 65% of the particulate carbon in the middle section of the bay, while losses to the bottom and to benthic respiration totaled only 12%. Even though the supply of particulate carbon to the upper bay was about 1.5 times the supply to the middle bay, the loss of carbon due to biological activity (biological efficiency) in each area was similar, and amounted to about 70% of the supply of particulate carbon.The research reported here was partially supported by the University of Maryland and by the U. S. Bureau of Sport Fisheries and Wildlife under Contract No. 14-16-0005-2096. Contribution No. 471 of the Natural Resources Institute, University of Maryland, USA.     

Quantifying the rebound effects of residential solar panel adoption

Customers who adopt solar panels can reduce their energy bills and lower the effective average electricity prices they pay. When the price falls, a solar consumer might consume more electricity than before – a solar rebound effect. We provide the first empirical evidence of residential solar rebound effects in the U.S. We use household level hourly and daily electricity meter data as well as hourly solar panel electricity generation data from 277 solar homes and about 4000 non-solar homes from 2013 to 2017 in Phoenix Arizona. Using matching methods and a fixed effects panel regression approach, we find that when solar electricity generation increases by 1 kWh, solar homes increase their total electricity consumption by 0.18 kWh. This indicates that solar rebound effects are estimated at 18%. Building upon our theoretical framework, the increase in consumer surplus from solar panel adoption is estimated at $972/yr.     

On estimating air pollution control benefits from land value studies

This paper deals with some unresolved issues in interpreting empirical property value/air pollution studies. A model is developed in which it is shown that in general regressions of property values on pollution variables do not identify the demand curve for clean air. However since the first derivative of the observed rent function is a locus of household equilibrium marginal willingnesses to pay, aggregate benefits can be calculated directly. The possibilities for obtaining approximate measures of aggregate benefits for nonmarginal changes in air quality are also discussed.     

Specification of the logit model: The case of valuation of nonmarket goods

We address the proper specification of the logit model for estimation of nonmarket commodity demand. Economic theory is used to show the conditions which must be met by the logit functional form if it is to yield valid estimates of welfare change measures and demand relationships. An empirical example is used to illustrate the argument. Recreational boating data were collected using the contingent valuation method (CVM) in Texas. In one instance the demand curve is positively sloped due to the specific functional form chosen. The estimated demand curve for the theoretically preferred functional form has the expected negative slope.     

Excretion of ammonia by zooplankton and its potential contribution to nitrogen requirements for primary production in the Catalan Sea (NW Mediterranean)

Excretion of ammonia by mesozooplankton (>200 m zooplankton) and its potential contribution to the nitrogen requirement for phytoplankton growth has been estimated for different hydrographical situations along a transect across the Catalan Sea (Northwestern Mediterranean). The nitrogen excreted as ammonia was estimated from mesozooplankton biomass and specific excretion rates. Nitrogen requirements of phytoplankton were estimated by means of carbon fixation rates and C:N ratios of <200 m particulate organic matter. Minimum C:N ratios and maximum primary production, zooplankton biomass, phytoplankton nitrogen requirements, and nitrogen excretion of zooplankton occurred near the Catalan density front. On average, the nitrogen regenerated by the mesozooplankton accounted for 43% of the nitrogen requirements of the phytoplankton. The specific excretion rates of ammonia and the percentage of phytoplanktonnitrogen requirements supplied by excreted nitrogen were higher at coastal stations. In some coastal and frontal stations, the ammonia excreted exceeded the phytoplanktonnitrogen demand. Bacteria competing for nutrient supply and the possible uncoupling between rate processes and standing stocks of phyto- and zooplankton could explain the apparent excess of regenerated ammonia.     

Recycling municipal,agricultural and industrial waste into energy,fertilizers, food and construction materials,and economic feasibility: a review

The global amount of solid waste has dramatically increased as a result of rapid population growth, accelerated urbanization, agricultural demand, and industrial development. The world's population is expected to reach 8.5 billion by 2030, while solid waste production will reach 2.59 billion tons. This will deteriorate the already strained environment and climate situation. Consequently, there is an urgent need for methods to recycle solid waste. Here, we review recent technologies to treat solid waste, and we assess the economic feasibility of transforming waste into energy. We focus on municipal, agricultural, and industrial waste. We found that methane captured from landfilled-municipal solid waste in Delhi could supply 8–18 million houses with electricity and generate 7140 gigawatt-hour, with a prospected potential of 31,346 and 77,748 gigawatt-hour by 2030 and 2060, respectively. Valorization of agricultural solid waste and food waste by anaerobic digestion systems could replace 61.46% of natural gas and 38.54% of coal use in the United Kingdom, and could reduce land use of 1.8 million hectares if provided as animal feeds. We also estimated a levelized cost of landfill solid and anaerobic digestion waste-to-energy technologies of $0.04/kilowatt-hour and $0.07/kilowatt-hour, with a payback time of 0.73–1.86 years and 1.17–2.37 years, respectively. Nonetheless, current landfill waste treatment methods are still inefficient, in particular for treating food waste containing over 60% water.

     

Direct use values of communal resources in Bokong and Tsehlanyane in Lesotho: whither the commons?

SUMMARY

This paper presents a comprehensive assessment of the contribution of communal resources to households in Bokong and Tsehlanyane in Lesotho. It argues that communal resources are an extremely important element in the livelihoods of people in the study area. It uses households as units of analysis in order to gain an understanding of the role that communal resources play at the micro level before any extrapolations are made to the regional and national levels. A household survey, guided by a detailed semistructured questionnaire, was used. Ten newly constructed houses and vegetable garden enclosures were sampled to categorize and count all poles used to build them. The amount of thatch grass used in building those houses was also estimated. The results indicated that communal resources play a central role in the livelihoods of people in the area with firewood ($1492), crops ($1363) and wild vegetables ($774) recording the highest annual use values per household^?1 yr^?1. The total present value was estimated at $3899 household^?1 yr^?1 with firewood, crops and wild vegetables constituting 93% of that value. The study further demonstrated that communal resources are used across the entire income spread in the area, thereby negating the general belief that they are a preserve of the poor. Finally, the results demonstrated that very little value is derived through trading of resources both within and outside the area but through direct consumption within households invariably escaping national economic accounting. With declining employment rates in Lesotho due to continued retrenchments in the South African mining industry, communal resources in the country remain an indispensable resource that must be carefully managed for the common good.     

Substitution between biofuels and fossil fuels: Is there a green paradox?

We show that (i) subsidies for renewable energy policies with the intention of encouraging substitution away from fossil fuels may accentuate climate change damages by hastening fossil fuel extraction, and that (ii) the opposite result holds under some specified conditions. We focus on the case of subsidies for renewable resources produced under increasing marginal costs, and assume that both the renewable resources and the fossil fuels are currently in use. Such subsidies have a direct effect and an indirect effect working in opposite directions. The direct effect is the reduction in demand for fossil fuels at any given price. The indirect effect is the reduction in the current equilibrium price for fossil fuels, which tends to increase the amount of fossil fuels demanded. Whether the sum of the two effects will actually result in an earlier or later date of exhaustion of the stock of fossil fuels depends on the curvature of the demand curve for energy and of the supply curve for the renewable substitute.     

Substitution between biofuels and fossil fuels: Is there a green paradox?

We show that (i) subsidies for renewable energy policies with the intention of encouraging substitution away from fossil fuels may accentuate climate change damages by hastening fossil fuel extraction, and that (ii) the opposite result holds under some specified conditions. We focus on the case of subsidies for renewable resources produced under increasing marginal costs, and assume that both the renewable resources and the fossil fuels are currently in use. Such subsidies have a direct effect and an indirect effect working in opposite directions. The direct effect is the reduction in demand for fossil fuels at any given price. The indirect effect is the reduction in the current equilibrium price for fossil fuels, which tends to increase the amount of fossil fuels demanded. Whether the sum of the two effects will actually result in an earlier or later date of exhaustion of the stock of fossil fuels depends on the curvature of the demand curve for energy and of the supply curve for the renewable substitute.     

Valuing congested recreation sites

This note discusses the issue of measuring consumers' surplus at crowded facilities. It is argued that surplus should be measured with congestion held constant. The area under an aggregate demand curve which has congestion varying has no normative significance. Whether travel cost demand curves estimated for congested facilities properly measured consumers' surplus depends on the sampling procedure and the specification of the demand curves.     

Willingness to pay to improve domestic water supply in rural areas of Central Tanzania: Implications for policy

This analysis estimates willingness to pay to improve community-based rural water utilities in the Dodoma and Singida Regions of Central Tanzania, using Multinomial Logit functions. An estimate of willingness to pay provides an indication of the demand for improved services and potential for them being sustainable. Surveys were conducted in a total of 30 villages in the two regions. In the Dodoma Region, about 14% of respondents indicated that they were satisfied with the status quo, 64% suggested increasing water discharge and watering points, and 22% proposed other improvements relating to water quality. In the Singida Region, 31% of the respondents were satisfied with the status quo, 59% wanted deeper boreholes and watering points, and 10% indicated other types of improvement relating to water quality. The Multinomial Logit functions indicated that the interaction between the water quality variable and proposed bids were important in making choices with reference to the type of improvement desired. Respondents who wanted to increase water supply in Dodoma Region were willing to pay 32 Tsh above the existing tariff of 20 Tsh/bucket. In the Singida Region, the analogous amount was 91 Tsh per household per year above the existing user fee of 508 Tsh per household per year. If the tariff or user fees have to be increased, the estimated average potential revenue for the surveyed villages was 252 million Tsh/year (US$265 263) in the Dodoma Region, and 5.2 million Tsh/year (US$5474) in the Singida Region. In the future, strategic planning is needed to ensure that improvements proposed potentially improve cost recovery initiatives and increase the level of consumer satisfaction. Also, care will be needed to ensure that more disadvantaged community members do not suffer unduly from increases in tariff or user fees.     

Urban fuelwood demand and markets in a small town in South Africa: Livelihood vulnerability and alien plant control

Fuelwood is the primary energy for most households throughout the developing world. With increasing urbanization and declining local availability of fuelwood, a growing proportion of households obtain their fuelwood by purchasing it. These fuelwood markets are the key nexus in supply and demand scenarios and can be potentially significant points for intervention to address energy security amongst the urban poor. This paper reports on the fuelwood demand and marketing in a small town in South Africa. Despite the availability of more modern fuels and state subsidization of electricity, fuelwood was still used by half the households. Annual demand was 1.2 t per household. Over half of the households bought their fuelwood requirements because local stocks were limited. Those households that did collect their own fuelwood were significantly poorer than households that purchased fuelwood, as well as households that did not use fuelwood at all. Fuelwood markets operated through 45-60 vendors who transported fuelwood from further afield. Income from the fuelwood trade was low, but was strongly linked to hours worked. Thus, vendors working a full week did earn a meaningful income, especially in the context of high unemployment in the area. Fuelwood vendors also provided casual employment opportunities for unskilled labour. Most vendors harvested fuelwood from commonage lands, with most of the wood being from alien species. Local stocks of wood are declining in the face of constant transformation of commonage to residential areas, and a national water and biodiversity conservation programme to eradicate alien plants. This decline poses a threat to the financial viability of fuelwood markets. Yet, an opportunity exists to incorporate the vendors into the alien plant clearing programme, since they already perform such a function.     

Incorporation of organic aggregates by marine mussels

Two marine mussels, Geukensia demissa (Dillwyn) and Mytilus edulis (L.) collected in 1990 in Old Silver Beach, Falmouth, Massachusetts, incorporated nitrogen when fed ¹⁵N-labelled organic aggregates produced from dissolved organic nitrogen released by the brown sea-weed Fucus vesiculosis. Uptake of ¹⁵N on the aggregate diet was linear over the course of 24 h, and unincorporated ¹⁵N was eliminated from the gut after 48 h. Both species of mussels incorporated approximately five times more N when they were fed organic aggregates than when they were fed either ¹⁵N-labelled dissolved organic material (DOM) or particulate detritus, both of which were also derived from the seaweed. Nitrogen uptake was greatest in controls fed the diatom Thalassiosira weissflogii; mussels fed phytoplankton incorporated seven times more nitrogen than those fed aggregates. However, aggregates could supply an estimated 7 to 14% of the N requirements for both mussels, whereas DOM or particulate detritus could only supply 1 to 3%. These data provide evidence that a food web pathway exists from primary producer to released dissolved organic nitrogen to microbial organic aggregate to metazoan consumer, and, further, that it can be more important in a detrital food web than either particulate detritus or DOM.     

Income and Price Elasticities of Bushmeat Demand in Lowland Amerindian Societies

Abstract: Consumption of bushmeat is an important component of household economies in most tropical forested regions of the world and is resulting in unsustainable levels of hunting, even in relatively isolated regions. We conducted standardized surveys of household consumption, income, wealth, and education level among Amerindian societies in Central and South America. Results suggest 1) demand for bushmeat may follow an inverted ∪ pattern with income, 2) consumers, particularly the most well-off, reduce their consumption of bushmeat as the price increases; and 3) a small decrease in the price of meat from domesticated animals is likely to lead to a large decrease in the consumption of fish but not of bushmeat. Policy makers may be able to reduce demand for bushmeat by raising the price of bushmeat, by increasing the direct and opportunity costs of hunting, and by raising household income.     

Cleaning the energy sources for water heating among Nanjing households: barriers and opportunities for solar and natural gas

Energy for water heating accounts for an increasing part in residential energy demand in China. An extensive survey was conducted to analyze the determinants of household energy choices for water heaters among residents in Nanjing, China. Two sets of variables were examined as potential influences： building features and household socio-economic characteristics. Results suggest that building features such as gas availability and building structures, and household characteristics such as household head＇s education degree and energy-conserving sense are crucial determinants in choosing natural gas as water heater energy. Installation permission for solar water heater, building stories, and residential location serve as determining factors in choosing solar water heaters. Based on these, barriers and opportunities are discussed for transitions toward cleaner water heating energies, and suggestions are given for local governments to promote cleaner energy replacement in China.     

Land reclamation and strip-mined coal production in appalachia

This study quantifies the short-run impacts of reclamation on strip mining costs, coal prices, production, and employment in Appalachia. A process analysis model is developed and used to estimate short-run strip-mined coal supply functions under conditions of alternative reclamation requirements. Then, an econometric model is developed and used to estimate coal demand relations. Our results show that full reclamation has rather minor impacts. In 1972, full reclamation would have increased strip-mined coal production costs an average of $0.35 per ton, reduced strip-mined coal production by 10 million tons, and cost approximately 1600 jobs in Appalachia.